QUESTION 17 4.52 points Say An unlevered firm currently has a stock price of $10...
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QUESTION 17 4.52 points Say An unlevered firm currently has a stock price of $10 and 2 million shares outstanding. The company plans to issue $10 million in debt and use all the proceeds to repurchase equity. Assume that the shares would be repurchased at the current stock price of $10 per share. The firm's corporate tax rate is 40%. What will the stock price be after this restructuring is completed? Except for taxes, assume that markets are perfect (no bankruptcy, etc.). ENTER YOUR ANSWER WITHOUT A DOLLAR SIGN AND ROUND YOUR ANSWER TO TWO DECIMAL PLACES
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